A small business, especially a new one, cannot afford not to budget for marketing. If based on a new idea, word needs to be gotten out. If the good or service being offered is tried and true, the small business has to constantly try to position itself a little higher than all the rest, a few of whom will certainly be bigger dogs on the block, who have been around much longer. Yet most small businesses probably won't be in a position to spend millions to advertise itself, and perhaps not even thousands. This makes understanding of how the elements of a marketing campaign work all the more crucial.
The two parts of a successful marketing campaign are product recognition and positive product association. For a small business, product recognition means simply that what the small business does is sufficiently distinct from others that when the consumer needs that particular product, the name of the small business comes readily to mind. By itself, this does not guarantee that the consumer will consistently prefer one business over another, but without a distinct identity the business won't even be in the running. It is positive product association, which can be as simple as positive word of mouth, which builds the foundation allowing an informed consumer to choose one business over another.
Roto-Rooter and Fed-Ex are examples of small businesses which have accomplished these two goals so spectacularly that they are no longer small businesses. So pervasive is the awareness of Fed-Ex that the name has become very nearly synonymous with reliable, cross-country shipping, very nearly to the point of becoming a generic noun in the same way Xerox has. We may not know exactly what a Roto-Rooter is but we easily remember that it has something to do with plumbing; so when we have plumbing problems, odds are good that Roto-Rooter is one of the quickest names to come to mind. In both cases the recognition level of and associations built upon the name are so powerful that the occasional piece of negative feedback which happens to every business eventually is virtually drowned out.
Some parts of the marketing campaign, such flyers or as a website well positioned within search engine optimization, will accomplish both of these goals simultaneously. Others, such as business cards and logo, aim primarily to increase name recognition. How much emphasis a given business will place upon each part of the formula will depend in part on the degree and type of growth desired at that point in the business plan. For example, a small business in a stable market with an established customer base and no particular plans to expand that customer base beyond replacement level probably won't need too much more marketing than business cards, a business listing in the telephone book, and maybe an informational website to complement positive word of mouth.
One often overlooked part of the marketing campaign is the business name itself. Small businesses which derive a significant percentage of their new clients from spontaneous choice, such as restaurants or hair salons, need a catchier name than those whose existence, capacities, and previous work is usually researched before the client makes a decision. Additionally, the less the customer is likely to understand about the nature of the work being done, the higher the value of a well-displayed, well-chosen name and logo. The classic modern example is the small business which specializes in computer repair and data rescue. These businesses arise so quickly that there often has been no time to establish either word of mouth or a solid web of references, nor does the customer usually understand much about the workings of their computer or what might be wrong. In the absence of other information, potential customers will tend to remember the catchy name and logo they saw on the building they just passed or painted on the car waiting for the red light in the lane next to them.
The next cheapest and best value marketing available to the small business is the business section of the telephone book, complemented by a professional quality webpage. Dollar for dollar, these two types of listings give more exposure than just about any other marketing technique. Between them, they give visibility in both of the major search media a potential customer is likely to engage first. For a very small business it is not all that important that the website have its own domain name, but the website should have clean lines, be easy to navigate, and contain an FAQ and contact information. A poorly designed website is worse than having no website at all. An easy, free trick to improve search engine standing is to start a separate blog discussing your business, with links to the appropriate parts of the website. Business telephone listings should be placed in the directory category most appropriate to the small business, and it may also be worthwhile to consider one of the directory's advertising options to make the business stand out a little. A little colour or slightly larger listing can go a long way.
It may seem easy and fairly cheap to distribute business cards at every opportunity, but if they are not properly contexted you might as well be throwing your money away. A business card should only be offered after an initial level of interest has been established. For "cold call" mailings a flyer is better, but its effectiveness is still limited, since in many cases all advertising class mail goes straight into the recycler. A limited promotion may help catch attention long enough for the flyer to be read, but such promotions should be used sparingly, specifically as a means to bring a potential customer in for a first time so as to show off the quality of your business. Opening day celebrations have become almost standard. Other common promotions include coupons for a single free inspection or oil change, a 2-4-1 dinner, or a tax-free purchase, but these should used very infrequently to keep your business from falling victim to the "pizza syndrome", where 2-4-1 is no longer the exception but the norm.
Related to promotions are loyalty programs, which are not limited only to big businesses anymore. Used correctly, these can be very effective in ensuring repeat clientele. Such loyalty programs usually offer one free service or item for every eight to ten purchased, and can be found in small businesses as diverse as hair salons, breakfast places, and small garages. This marketing technique has the added benefit that its costs can be directly figured into the cost per unit.
For a small business without deep pockets, mass media advertisements should be undertaken rarely if at all. Television and radio advertising requires saturation to be effective, print advertisements are easy for the eye to skip. One option some local newspapers offer is the ability to write a column about some facet of the service which may be of general community interest, in which the writer's credentials and business may be mentioned directly or as part of the byline. For example, a landscaping business operator may write a column about the use of water features in the garden.
The opportunity to participate in a local business fair or dedicated trade show should be factored against its audience reach. For a small business looking to start selling its product nationwide, a trade show offers the perfect opening to connect with potential distributors. A local small business may choose to purchase a booth at the local fair instead. Such venues offer a perfect opportunity to give out flyers and other promotional material to an audience which is likely to actually read them. Combine this display with a linked promotion, and you will almost certainly be getting callbacks from interested potential customers and vendors.
Another advantage to participating in the local business fair is that it can allow you to build up an e-mail mailing list. Unsolicited newsletters are spam. The potential customers who are willing to give you their e-mail addresses have already indicated interest in your product, and are willing to receive future information from you.
Trade shows may offer a highly targeted audience, but don't forget to talk about your business at every opportunity. A blog is one online variant, but nothing beats the in person touch. As long as you are careful not to force the subject and respect the interest level of the person you are talking to, no one minds a little gush and a willingness to answer questions. In fact, it is nearly expected. You are proud of your small business. Why not share your pride?